Oil Drops Sharply as Trump’s Tariff Deadline Looms
A weakening U.S. dollar helped limit some of oil’s losses, as it makes crude cheaper for buyers using other currencies.
Quick overview
- Oil prices fell for the third consecutive session due to concerns over a potential trade war between the U.S. and the EU, which could reduce fuel demand.
- Brent futures decreased by 0.9% to $68.59 per barrel, while U.S. West Texas Intermediate crude dropped 1.5% to $66.21.
- Increased production quotas from OPEC+ members are raising fears of a supply glut in the market.
- The U.S. has set an August 1 deadline for trade agreements, with potential tariffs looming if negotiations fail.
Oil prices declined for a third consecutive session on Tuesday, as concerns mounted that an impending trade war between the world’s top crude consumers—the United States and the European Union—could dampen fuel demand by slowing economic activity.
Brent futures fell 0.9% to $68.59 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 1.5% to $66.21.
“Oil prices are slipping for a third straight session as urgency grows in trade negotiations between the U.S. and its key partners,” analysts noted. Meanwhile, increased production quotas from Saudi Arabia and seven other members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are fueling concerns about a potential supply glut.
August 1: Tariff Deadline Approaches
The U.S. government has set August 1 as the deadline for countries to reach trade agreements or face steep tariffs.
EU diplomats have indicated that the bloc is preparing a broader package of retaliatory measures as hopes fade for a favorable trade deal with Washington. The U.S. is threatening to impose a 30% tariff on EU imports if a deal is not reached.
A weakening U.S. dollar helped limit some of oil’s losses, as it makes crude cheaper for buyers using other currencies.
Crypto Assets
Bitcoin (BTC) reversed earlier losses and climbed 1.9% to $119,554, according to Binance. Meanwhile, Ethereum (ETH) edged down 1.1% after posting a 20.7% gain over the past seven days, holding near $3,714.
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